Premier Miton's Rayner: Why 'low risk' assets have changed for first time in 30 years

'Suspiciously high returns' from US Treasuries

Equities, commodities and property have overtaken US Treasuries as the new ‘safe haven’ assets for investors, according to Premier Miton’s Anthony Rayner, who said today’s inflationary environment has meant asset class risk hierarchy has been “turned on its head”.

In a recent note to investors, the multi-asset fund manager said US government bonds have made "suspiciously high returns", having been seen as the "definitive safe haven asset" over the last three decades, and warned that the low-inflation, low-rate environment is set to be dominated by hawkish central bank policy for some time to come. "In this inflationary environment, US Treasuries, far from being safe haven assets, have been one of the primary expressions of inflation risk," he explained. "As a result, US Treasuries and many bond sub-asset classes have experienced losses over the re...